Royalty Pharma (NASDAQ:RPRX) Stock Jumps 3.3% - Here's Why

Key Points

• Royalty Pharma shares rose 3.3% to approximately $58.46, though trading volume was 79% below the average session volume.
• Analysts remain broadly positive: eight analysts rate the stock a Buy, with an average price target of $61.57. JPMorgan raised its target to $62, while Goldman Sachs maintained a $66 target.
• The company reported quarterly EPS of $1.32, beating estimates of $1.27, and declared a $0.235 quarterly dividend, equivalent to a 1.6% yield.

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report)'s stock price rose 3.3% on Wednesday. The stock traded as high as $58.45 and last traded at $58.4550. Approximately 722,411 shares changed hands during trading, a decline of 79% from the average session volume of 3,411,027 shares. The stock had previously closed at $56.57.

Analyst Ratings Changes

Several research analysts have commented on the company. Wall Street Zen downgraded Royalty Pharma from a "strong-buy" rating to a "buy" rating in a research report on Saturday, September 26th. The Goldman Sachs Group restated a "buy" rating and issued a $66.00 price objective on shares of Royalty Pharma in a research note on Thursday, August 6th. Bank of America reaffirmed a "buy" rating on shares of Royalty Pharma in a research report on Wednesday, August 5th. JPMorgan Chase & Co. upped their target price on shares of Royalty Pharma from $58.00 to $62.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Finally, Weiss Ratings raised shares of Royalty Pharma from a "buy (b-)" rating to a "buy (b)" rating in a report on Monday, September 14th. Eight research analysts have rated the stock with a Buy rating. According to MarketBeat.com, the stock presently has an average rating of "Buy" and an average price target of $61.57.

Royalty Pharma Stock Performance

The stock has a market capitalization of $33.86 billion, a P/E ratio of 40.57, a PEG ratio of 1.58 and a beta of 0.42. The firm has a 50-day moving average of $59.27 and a 200 day moving average of $55.50. The company has a quick ratio of 2.80, a current ratio of 2.80 and a debt-to-equity ratio of 0.88.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.27 by $0.05. The company had revenue of $674.14 million during the quarter, compared to analysts' expectations of $758.93 million. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. Research analysts anticipate that Royalty Pharma PLC will post 5.29 EPS for the current fiscal year.

Royalty Pharma Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Investors of record on Friday, August 14th were paid a $0.2350 dividend. The ex-dividend date of this dividend was Friday, August 14th. This represents a $0.94 annualized dividend and a yield of 1.6%. Royalty Pharma's payout ratio is currently 64.83%.

Insiders Place Their Bets

In other Royalty Pharma news, EVP Marshall Urist sold 4,126 shares of Royalty Pharma stock in a transaction on Monday, October 5th. The stock was sold at an average price of $57.10, for a total transaction of $235,594.60. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Christopher Hite sold 100,000 shares of the business's stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $58.53, for a total transaction of $5,853,000.00. Following the completion of the sale, the executive vice president owned 270,401 shares in the company, valued at $15,826,570.53. This represents a 27.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 208,252 shares of company stock worth $12,324,407 over the last quarter. Company insiders own 18.84% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. NorthCrest Asset Manangement LLC increased its position in Royalty Pharma by 41.3% in the 3rd quarter. NorthCrest Asset Manangement LLC now owns 6,705 shares of the biopharmaceutical company's stock valued at $377,000 after acquiring an additional 1,961 shares in the last quarter. Wedmont Private Capital increased its holdings in shares of Royalty Pharma by 17.8% in the third quarter. Wedmont Private Capital now owns 8,902 shares of the biopharmaceutical company's stock valued at $500,000 after purchasing an additional 1,345 shares in the last quarter. Legacy Wealth Asset Management LLC acquired a new stake in shares of Royalty Pharma in the third quarter valued at approximately $356,000. Congress Asset Management Co. bought a new position in Royalty Pharma in the 3rd quarter worth approximately $30,761,000. Finally, Ridgewood Investments LLC acquired a new stake in shares of Royalty Pharma in the 3rd quarter valued at $208,000. Institutional investors own 54.35% of the company's stock.

About Royalty Pharma

Royalty Pharma plc is a biopharmaceutical royalty acquisition company that provides funding to life sciences companies in exchange for rights to future payments associated with approved or development-stage medicines. Its business model gives biotechnology and pharmaceutical companies access to capital while allowing Royalty Pharma to participate in the commercial success of therapies without directly developing or marketing them.

The company invests in royalties and other economic interests tied to a broad range of biopharmaceutical products, including treatments for cancer, rare diseases, immune disorders, diabetes and other chronic conditions.

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